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Redcats USA to acquire United Retail Group
11 Sep '07
3 min read
United Retail Group Inc a specialty retailer of large-size women's fashion apparel, and Redcats USA Inc a subsidiary of Redcats Group, a leading home shopping marketer of apparel and home products announced that they entered into definitive agreement for Redcats USA to acquire United Retail Group.
Under the terms of the agreement, Redcats USA will commence a tender offer to purchase all of the outstanding shares of United Retail Group for $13.70 per share in cash, which is an aggregate equity value of $198.9 million.
The offer represents a 23% premium to the 90-day average of United Retail Group's share price, and a 82% premium to the closing price on September 10, 2007.
The acquisition has been unanimously approved by the Boards of Directors of both companies. The Board of Directors of United Retail Group has unanimously recommended that shareholders of United Retail Group's common stock accept the offer.
Mr. Raphael Benaroya, United Retail Group's Chairman, President and Chief Executive Officer, has also signed an agreement by which he will tender all of his shares to Redcats USA into the tender offer.
Mr. Benaroya said, “We are very pleased to have entered into this merger agreement with Redcats USA. We believe that the combination of our two businesses will create a formidable entity in specialty retail."
"Our Board of Directors and management team fully support the transaction and believe that it delivers a high level of shareholder return that is commensurate with our solid business concept and growth strategy. Moreover, the transaction provides a great growth opportunity for our associates.”
Under the terms of the agreement, Redcats USA will commence a tender offer to purchase all of the outstanding shares of United Retail Group for $13.70 per share in cash, which is an aggregate equity value of $198.9 million.
The offer represents a 23% premium to the 90-day average of United Retail Group's share price, and a 82% premium to the closing price on September 10, 2007.
The acquisition has been unanimously approved by the Boards of Directors of both companies. The Board of Directors of United Retail Group has unanimously recommended that shareholders of United Retail Group's common stock accept the offer.
Mr. Raphael Benaroya, United Retail Group's Chairman, President and Chief Executive Officer, has also signed an agreement by which he will tender all of his shares to Redcats USA into the tender offer.
Mr. Benaroya said, “We are very pleased to have entered into this merger agreement with Redcats USA. We believe that the combination of our two businesses will create a formidable entity in specialty retail."
"Our Board of Directors and management team fully support the transaction and believe that it delivers a high level of shareholder return that is commensurate with our solid business concept and growth strategy. Moreover, the transaction provides a great growth opportunity for our associates.”
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